CMC Markets chief executive and founder Peter Cruddas says he and wife Fiona expect to maintain a 70% shareholding in the business even after it is listed on the stock market.
The Cruddas family is tied into a 1,095 day lock-up period on 50% of their stake after admission. The remaining 50% is subject to a 730 day lock-up.
‘We’re confident about the future,’ says Cruddas.
‘Underneath the fog of what is happening in markets at the moment, there are lots of good companies performing very well and we are one of them. The fundamentals have not changed here at all.’
Listing the business in the midst of one of the most volatile markets for years has been challenging, Cruddas admits.
Cruddas says he has spoken to 34 potential investors and the ‘feedback has been so good we felt comfortable going ahead with the IPO’.
CMC has spent around £100 million in the last five years investing in its platform, Cruddas says, and 50% of CMC’s turnover is now derived from mobile devices.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was £59.7 million in 2015. Revenue was £157.9 million and management is targeting £250 million by the year 2020, according to CMC’s intention to float document.
‘The key thing for us is technology and our next generation platform,’ Cruddas says.
‘We’ve got strong operational gearing in our business now because we can service an increasing number of clients without incurring a significant amount of cost.’
CMC will aim to pay dividends at 50% of underlying net income though investors will need to wait for a prospectus to see full financial details.
As part of the IPO, new and existing clients of CMC’s platform will have the option of receiving a bonus share for every 10 they buy, provided the shares are held for a year and subject to other conditions.